The Reserve Bank of India (RBI) on Tuesday cancelled the banking licence of Mumbai-based Sarvodaya Co-operative Bank, citing poor financial health, inadequate capital and weak earning prospects. With the cancellation coming into effect from the close of business on May 12, 2026, the bank can no longer carry out any banking operations, including accepting or repaying deposits. The RBI has also directed the Commissioner for Cooperation and Registrar of Cooperative Societies in Maharashtra to begin the process of winding up the bank and appoint a liquidator.